Editor
The US stock market made a slight upward move on Friday, with major indexes lingering just below new record highs. Investors were busy sorting through a hectic week filled with trade talks, tech earnings, and some unusual political drama at the Federal Reserve.
The Dow Jones Industrial Average ticked up by 0.3%, while the S&P 500 saw a 0.4% increase—setting the stage for what could be a fifth consecutive record close. The Nasdaq Composite also rose by 0.4%, driven by optimism in the tech sector and strong quarterly results.
All three indexes are on track for weekly gains exceeding 1%, continuing a rally that many believe is more about market sentiment than solid fundamentals.
Tech Gains, Trade Deals, and a Hint of Drama
This week was packed with action: we saw corporate earnings from major players, fresh updates from the Fed, and a new trade agreement with Japan that—at least for now—has lifted spirits.
“The market’s been fueled by a mix of earnings optimism and some relief on the geopolitical front,” said Jenna Morales, chief U.S. strategist at Brickwell Capital. “But there’s a delicate balance between healthy excitement and outright irrationality. At the moment, we’re somewhere in that gray area.”
The recently signed trade deal between the U.S. and Japan gave a nice boost to the week’s energy, sparking hopes for progress with Europe as we approach the August 1 deadline. Countries that don’t reach agreements with Washington by then might face retaliatory tariffs.
However, even this Japan deal might be facing some challenges. Reports suggest there are still disagreements over how the profits from a $550 billion U.S. investment fund—part of the agreement—will be divided. Negotiators are still at odds, casting a shadow over what initially seemed like a victory for the White House.
A Fed Visit—And a Presidential Jab
If the earnings and trade headlines weren’t enough to grab attention, President Trump stirred the pot even more by making a surprise visit to the Federal Reserve headquarters on Thursday—definitely a move that’s out of the ordinary, even for him.
While checking out the central bank’s hefty $2.5 billion renovation, Trump didn’t hold back, calling the expense “outrageous” and questioning if it was truly “the best use of taxpayer money.” Although he didn’t directly take aim at Fed Chair Jerome Powell, the visit sparked fresh rumors that Trump might be on the lookout for a reason to let him go.
However, when speaking to reporters, the president brushed off any talk of Powell’s job being at risk. “We don’t always see eye to eye,” Trump remarked, “but I’m not firing him.” It seemed like the markets let out a collective sigh of relief.
Intel Pops, Then Drops
Intel surprised everyone with a better-than-expected quarterly revenue report after the market closed on Thursday, which initially sent the stock soaring in after-hours trading. However, that excitement faded pretty quickly. The chip giant also announced plans to lay off workers and pause construction on several factory projects—moves that investors saw as warning signs for future growth.
“Sure, beating earnings is a positive, but when you’re also scaling back on key expansion plans, it raises some serious questions about how sustainable the demand really is,” noted Eric Lin, a semiconductor analyst at Stratus Research.
By the end of the trading session, Intel’s stock had dipped, highlighting just how nervous investors are—even when faced with seemingly good news.
Next Week: Big Tech, Big Decisions
As we look to the future, investors are gearing up for a wave of economic reports and corporate earnings. The Federal Reserve is set to kick off its two-day policy meeting next week, right before the highly anticipated July jobs report. Everyone will be keeping a close watch on the earnings from major tech players like Apple, Meta, and Microsoft.
Adding to the mix is the looming Aug. 1 trade deal deadline, a crucial moment that could either heighten tensions or pave the way for new partnerships.
“Next week is a real test for the rally,” Morales noted. “We’ll find out if this market has real momentum or if it’s just been running on empty.”
